Highway 51 Bridge between Wagoner and Coweta. Photo by flickr user doug_wertman used under a Creative Commons License.

Last week, Gov. Fallin announced a plan to fix the state’s decaying bridges by 2019. The proposal involves putting more money in the ROADS fund, which receives a portion of income tax revenues that would otherwise go to the state’s General Revenue Fund.

OK Policy released a statement on the Governor’s plan that was mentioned by both The Oklahoman and The Tulsa World:

We welcome Governor Fallin’s focus on fixing Oklahoma’s crumbling bridges. However, we must note that her proposal would be paid for entirely by diverting more income tax revenues from an already cash-strapped state budget. At the same time, Governor Fallin and other state leaders are promoting further cuts or outright abolition of the income tax. This should remind us that the income tax remains vital for funding Oklahoma’s needs and that we cannot meet our obligations to pay our bills while undermining our revenue base.

The Oklahoman included a response from the Governor’s spokesperson that the effort to fix bad bridges “does not reflect a lack of commitment to other areas of government.” Fallin’s office told The Oklahoman, “much of the additional transportation funding would come from growth revenue, and Oklahoma has enjoyed nice growth in revenue this fiscal year.” Read the rest of this entry »

This video provides an excellent graphical overview of postwar recessions, putting the most recent economic downturn into grave perspective.  The video was created and narrated by Colin Gordon of the Iowa Policy Project.  For more videos like this, and additional research and resources on policies that affect working families, visit www.buildingthemiddleclass.org.

View other clips from OKPolicy’s “Watch This’ video series:

Making Ends Meet: The Medicare Generation

A tale of two (Oklahoma) cities

Living Through the Oklahoma Dust Bowl

Reducing Infant Mortality

What is Sharia Law?

Panic Nation

Despite encouraging signs that an economic recovery is gaining strength, unemployment remains at stubbornly and unacceptably high levels. Nationally, the jobless rate in October stayed stuck at 9.6 percent, while the latest state unemployment numbers found that 121,800 Oklahomans, or 6.9 percent of the workforce, are out of work. While some workers have relatively short stints of unemployment between jobs, the magnitude of the job losses this recession and the slow pace of recent job creation have left a large segment of the unemployed population unable to find work for extended periods. According to the National Employment Law Project, the unemployed are experiencing record periods of joblessness: nearly 42 percent of the 15 million jobless workers are “long-term unemployed”—that is, out of work for six months or longer. With there being 4.6 unemployed workers for every available job, most of the unemployed continue to be without work through no fault of their own.

For many of these jobless workers and their families, weekly Unemployment Insurance (UI) benefits provide an essential safety net allowing them to recoup a portion of their lost income – about $290 per week on average – and  pay the bills without additional public support or a full-blown financial emergency. As in past national recessions, Congress has responded to high levels of unemployment by approving federally-funded extensions of UI benefits that go beyond the basic 26 weeks of state-funded benefits. Under the main temporary program of federal jobless benefits, called Emergency Unemployment Compensation (EUC),  qualified unemployed workers who are actively seeking work receive an additional 34 to 53 weeks of UI benefits, depending on the state’s unemployment rate. NELP reports that so far, in 2010 alone, nearly 9.5 million workers collected federally funded benefits, contributing an estimated $68 billion to the nation’s economy. Read the rest of this entry »

The first part of this week I am attending the annual State Fiscal Policy Conference organized by the Center on Budget and Policy Priorities. While most of the conference sessions focus on the fiscal challenges facing state governments – and the need to pursue balanced and fiscally responsible approaches to preserving core public services in these difficult times – the opening plenary featured an informative and convincingly-argued talk on the prospects for the national economy by Mark Zandi, the chief economist for Moody’s Analytics and one of the nation’s most perceptive and widely-respected economic policy analysts. In recent years. Zandi has gained particular prominence both as an adviser to the McCain campaign during the 2008 Presidential election and as co-author, along with former Federal Reserve Vice Chairman Alan Binder, of an important report this past summer that found that federal stimulus measures had a huge and positive impact in turning around the economony and averting a full-scale Depression.

Zandi’s talk, which he titled “Struggling to Hit Escape Velocity,” made three major points about  the economy. The first was that the economic recovery, which had been gathering steam in late 2009 as a result of the spending and tax cut provisions of the stimulus bill passed by Congress in February 2009, has lost momentum over the past six months. Real GDP, which grew 3.3 percent in the second half of 2009, slowed to 2.7 percent in the first half of 2010 and is on pace to grow just 2.0 percent in the second half of this year. This is “painfully slow growth” which will not be enough to forestall further increases in the unemployment rate, which he expects to creep back above double digits in 2011. Zandi identifies two main culprits for the slackening economy: the declining economic impact of the stimulus package and the European debt crisis of earlier this year, which battered stock prices,  reversed growing business and consumer confidence, and slowed private sector hiring.  Although the European crisis now seems to be over, Zandi believes it set back the American recovery by a good six to 12 months. Read the rest of this entry »

This week, OK Policy put out the latest edition of Numbers You Need, our monthly bulletin of key economic and budget indicators for the state. Our main headline was of an economic recovery stuck in neutral. While there are certain encouraging signs of the state emerging from out of the Great Recession, the downturn is continuing to hit segments of the population hard. High levels of distress can be seen, for example, in record numbers of home foreclosures and continued growth in food stamp and Medicaid caseloads. But it is the persistence of high rates of unemployment and slow job growth that provide the strongest and most worrisome indicator of the distances still needed to be traveled to a solid, broad-based recovery.

Oklahoma’s unemployment rate hit 6.8 percent in June, rising one-tenth of one percent for the second straight month and falling just short of the highest rate registered during this recession (6.9 percent from August to October 2009). Oklahoma’s unemployment in June remained well below the national rate of 9.5 percent and was 8th lowest among the states.  However, over the past six months, the national unemployment rate has dropped 0.5 percentage points, while Oklahoma’s rate has remained unchanged.

Read the rest of this entry »

Treasurer Scott Meacham today announced that General Revenue (GR) collections for the first month of the new state fiscal year, FY ’11, came in 9.9 percent above the prior year and 11.9 percent above the official certified estimate. The sales tax and corporate income tax saw the strongest growth compared to July 2009, while personal income tax collections were off by 0.1 percent from a year ago, likely reflecting the persistence of weak employment numbers.

Although one must be careful of drawing conclusions based on a single month, July’s collections confirm that revenues are continuing the upswing seen in recent months and should further dispel fears that the state will face a third consecutive year of revenue shortfalls requiring mid-year cuts.  It now seems far likelier that the economic projections made in February that formed the basis of this year’s budget underestimated the speed and strength of the economic recovery. If GR continues to come in above 100 percent of the estimate over the course of the full year, the surplus will go to replenishing the Rainy Day Fund. Read the rest of this entry »

On January 11th, Chad Wilkerson, the Branch Executive of the Oklahoma City office of the Federal Reserve Bank of Kansas City will be giving a free public lecture on “The Economy Around Us: Recession and Recovery”. Wilkerson, who serves as the Federal Reserve’s regional economist, will look at historical business cycles and current economic trends to offer his assessment of what to expect of the Oklahoma economy as the national recovery begins to take hold. We heard Chad speak on the economy back in April and can highly recommend him as a  perceptive and well-informed presenter.

The talk, which will take place from 12 – 1 pm at the Oklahoma History Center, is part of the Policy & Practice lecture series hosted by the Oklahoma Department of Human Services Office of Planning, Research and Statistics and University of Oklahoma Center for Public Management. Other speakers in the Spring 2010 series include Harvard economics professor David Cutler addressing health care reform; NPR correspondent John Hockenberry on eliminating stereotypes; and Charles Wilson of the Center for Children and Families in San Diego on the impact of childhood trauma.

Yesterday, the U.S. Census Bureau released its annual report on income, poverty and health insurance coverage for 2008  from its Current Population Survey. You can or click here for fact sheets and links to all the data or click here to read the 72-page PDF report. Read the rest of this entry »

Check out Slate.com’s animated map of the changing job picture over the last three and a half years. If you scroll down to the map and click the green arrow at the lower right, you can watch the job picture change for individual counties on a month-by-month basis. Counties are blue when they’ve gained jobs over the most recent year and red if they’ve lost them. The red circles spreading across the country are pretty dramatic evidence of how deep and broad this recession has been and continues to be. While we should avoid being smug at a time like this, we think most Oklahomans, regardless of their political leanings, will be pleased and grateful to see that we are one of the very few states that look more blue than red.